FBR Capital Reiterates a 'Market Perform' on Astoria Financial (AF); Favorable Credit Trends Mitigate Rising FDIC Insurance Expense
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Price: $21.50 --0%
Rating Summary:
3 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on Astoria Financial (NYSE: AF), raises PT from $15 to $16.
FBR analyst says, "Revenues and pre-provision earnings continued to trend lower in 1Q11, but the pace of runoff slowed, and management reiterated its expectation for loan growth in 2H11, which should hopefully reverse the current trend. A $22 million annual increase in AF's FDIC deposit assessment (unless a recent proposal reverses the new calculation) will be another headwind for "normalized" earnings, but this cost is mitigated in our model by a reduction in provision expenses. Credit improvement continued in 1Q11. We adjust our 2011 estimate to $1.00 (from $0.95) largely to reflect the 1Q11 beat but also a lower provision outlook. We reiterate our 2012 operating EPS estimate of $0.95, as higher FDIC deposit insurance costs offset a lower provision outlook. GSE reform may be a favorable long-term catalyst for Astoria, but we are somewhat skeptical that the government's exit will be expeditious."
For more ratings news on Astoria Financial click here and for the rating history of Astoria Financial click here.
Shares of Astoria Financial closed at $14.40 yesterday.
FBR analyst says, "Revenues and pre-provision earnings continued to trend lower in 1Q11, but the pace of runoff slowed, and management reiterated its expectation for loan growth in 2H11, which should hopefully reverse the current trend. A $22 million annual increase in AF's FDIC deposit assessment (unless a recent proposal reverses the new calculation) will be another headwind for "normalized" earnings, but this cost is mitigated in our model by a reduction in provision expenses. Credit improvement continued in 1Q11. We adjust our 2011 estimate to $1.00 (from $0.95) largely to reflect the 1Q11 beat but also a lower provision outlook. We reiterate our 2012 operating EPS estimate of $0.95, as higher FDIC deposit insurance costs offset a lower provision outlook. GSE reform may be a favorable long-term catalyst for Astoria, but we are somewhat skeptical that the government's exit will be expeditious."
For more ratings news on Astoria Financial click here and for the rating history of Astoria Financial click here.
Shares of Astoria Financial closed at $14.40 yesterday.
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